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Letitia Patterson-Investor Agent

Your Best Source for Metro Detroit Investment Property - 248-506-9426

By Letitia Patterson | Agent in Detroit, MI

Investor Question of The Day: Low Prices & Hidden Costs

Ningwang, Home Buyer in Detroit, MI

The price of the properties are low .But how about other costs?Is the tax very high or is it very expensive to maintain the property?

ANSWER:


Yep. The prices are extremely low. This should be your first tip-off :-).

Compared to other places around the globe, Metro Detroit investment property is ridiculously affordable. However, when property prices are presented as just too good to be true, there is usually something amiss.

Each investment property has the following characteristics by which you'll evaluate the strength of the investment:

1. Location/Neighborhood
2. Price
3. Repairs
4. Title
5. Tenants


So, let's say the price is super low (under $5000). That will usually mean one or MORE of the following:

1. There is a ton of repairs to be performed
2. The property is in a horrible neighborhood
3. The title is not clear somehow and there are past due taxes or water bills due
4. The tenants are non-performing and need to be evicted

Keep in mind, even in a great market, prices for the better quality homes is consistent.

You won't see the average turnkey rental property selling for $10,000 here, so if you do see something akin to this advertised, just know that one of those other areas may not be fully intact.

Time= Money. So the longer it takes to rehab or tenant a property means that you make less money and spend more time fixing issues.

It may be worth it to take a short-cut occasionally, but buying right in the beginning saves you a world of trouble in the long run.

If you need help choosing the right investment properties, contact our team anytime!


Good Luck and Happy Investing!






Letitia Patterson is a licensed Realtor in Michigan. She currently holds certifications as a Certified Investor Agent and Certified Foreclosure/Short Sale Resource.

She has sold hundreds of Investment Properties to Investors from all around the world and  loves helping th
em invest wisely for immediate cash-flow, as well as long-term gain. Letitia's mission is to help make Real Estate millionaires!



Join our mailing list or request Investment Properties

Letitia N. Patterson
(la-tee-sha)

Office: 248-905-1531

Cell: 248 506-9426
Email: myrealestateteam1@gmail.com

Comments

By russ,  Wed Mar 27 2013, 10:45
thanks for info
By Michael Anthony,  Wed Mar 27 2013, 11:05
thanks for the wonderful info
By Matilda Duffy,  Mon Apr 1 2013, 14:44
so true, 17,000 dollars for a house, but the property tax is 1890. per year, look at property tax's as rent for the life of the home and they tend to go up not down.... fixed income people beware
By Jeff Gammon,  Tue Apr 2 2013, 14:05
great
 
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